Delhi HC issues summons to Ashneer Grover in BharatPe co-founder's case of unpaid shares

New Delhi, March 24 (IANS) The Delhi High Court on Friday issued summons to BharatPe's former Managing Director Ashneer Grover in connection with a case filed by fintech company's co-founder Shashvat Nakrani over claims of unpaid shares.

Representing Nakrani, senior advocate Neeraj Kishan Kaul contended that in case filed by co-founder Bhavik Koladiya on the same lines, the court has issued summons and has asked Grover to not create any third-party rights in respect of the shares in BharatPe.

The High Court had, on January 18, told Grover to file an undertaking in a week's time and restraining him from creating any third-party rights over the shares.

Appearing before the bench of Justice Sachin Datta, Kaul said that it is Grover's stand that he has paid for the shares in cash.

The court noted that the case was filed about five years after the shares were stated to have been transferred while Kaul argued for an interim relief.

Lawyer Giriraj Subramanium, Grover's counsel, was questioned by Judge Datta if he was prepared to make a statement that no third-party rights would be created over the shares.

To this, Subramanium said that he has instructions not to make such a statement.

Justice Datta then listed the case for the next hearing on March 28, on the issue of interim relief sought by Nakrani.

"Plaintiff has been heard at some length in the interim relief application. Counsel for the defendant says they don't want to file a response to the application. List on Tuesday for further arguments," the court ordered.

The judge also issued notice on Nakrani's application seeking to file some documents in a sealed cover.

Koladiya's suit seeking to reclaim trasferred shares remains pending before another bench of the High Court.

In the Koladiya's case, when the court had earlier asked Grover to not create any third-party rights over the shares, he had informed the court that subject to further directions from the court, he will not make any third-party interest in the 16,110 shares that Koladiya transferred to him and in any rights that accrue to him as a consequence thereof.

A single-bench judge Justice Prateek Jalan had ordered that Grover will be bound by his statement and directed him to file the undertaking.

The court had also served summonses on Grover and the fintech company, giving the former four weeks to respond to the application for an ad interim injunction and two weeks for a rejoinder to the same.

The bench had noted: "D1 (Grover) is bound to the aforesaid statement and is directed to file an undertaking to this effect within one week from today. Reply to application in four weeks, rejoinder in two weeks thereafter."

Nakrani and Koladiya founded the fintech company in 2017. In 2018, Grover joined the company as the third co-founder.